Diary of a LittleFish

Dairy of a Littlefish – April

April’s been another month in the negative, but there have been moments which the strategy has captured the big unexpected moves. Case and point being the surprise announcement from Theresa May mid-April about calling a general election in June. Because I had my orders in place, when the move happened it managed to capture pretty much all of it.

I also spoke to the LFX team about the progress of this strategy and I’ve been advised that I should now add additional instruments to the arsenal. For the past few weeks I have been trading the SPX500, Gold and Oil. All three differ from the currency pairs I’ve been trading the past 6 months. But the idea is if I expand the number of instruments, I should capture more of the explosive moves and in the long run remain profitable.

Funnily enough however, if I hadn’t started trading those three extra instruments, I would have finished the month with almost +300 pips! Primarily due to the GBP/USD, which is shown in the breakdown below.

APRIL RESULTS

* At this moment in time I haven’t amended my Excel output to include these additional instruments, so the original three currencies are shown.

So without Oil, SPX500 & Gold, I would have had my first profitable month since November! But without the large moves on the GBP/USD it would have been a little worse.

On the currency pairs, my win rate for April was 55% and my average pips per trade was in the positive at 9 pips. Although my average pips per losing trade was greater than my average pips gained on wining trades.

It’s still good to know that I’m hitting the average number of trades per month, with April being triggered into 49 trades across the currency pairs.

Although ultimately I ended up with a loss of -360 pips, including all the instruments I traded this month. It’s still a smaller loss than what I’ve seen in the past.

Fictitious 50k Account

Reviewing these figures, if a higher risk was utilised, then over 6 months the strategy would have lost almost half the account. However if a lower risk was applied a much lower % loss is seen. Although any loss isn’t ideal, it goes to show that poor risk management can help blow up an account!

ADDITIONAL BITS AND PIECES

This Month’s Book – Diary of a Currency Trader, Samuel J. Rae

This Month’s Podcast – ChatWithTraders: 121: Tactics for better decision making, and skill versus luck w/ Michael Mauboussin  &

Two Blokes Trading Podcast – 048 – Trade Like a Pro with Alan Hill 

This Month’s Quote – “Give me control of a Nation’s money supply, and I care not who makes its laws” – Mayer Amchel Rothschild

Other Interesting Stuff:

London hedge fund workers to be given ‘champagne buttons’ for their desks  —

Trader Life – Lets Race F1 Simulator  —

Quants Are Eating Away at Wall Street’s Edge

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Trade The Plan; Rinse & Repeat